Why General Mills' Improved Outlook Isn't Moving Its Stock
In the sea of red that represents the 29% year-to-date plunge of the S&P 500 index as of this writing, packaged foods manufacturer General Mills (NYSE: GIS) has enjoyed coveted status: Shares have gained nearly 6% during the same period.
As a defensive, consumer-oriented stock that stands to benefit from a shift to at-home food consumption during the COVID-19 pandemic, General Mills' current appeal isn't hard to grasp. Earlier this month, I recommended it as a safe dividend stock to consider buying during the coronavirus outbreak.
In the company's fiscal third-quarter 2020 earnings report released Wednesday, management bumped up its full-year earnings guidance slightly. With so many companies in various industries suddenly worrying about their basic solvency, one would think investors would interpret this outlook boost as an extremely positive sign. Yet shares fell roughly 5% in mid-afternoon trade (though this percentage decline was roughly half of a nearly 10% drop in the overall market during the session).
Source Fool.com
